Philippine benchmark interest rates for short-term loans rose prompting the Bureau of the Treasury to only borrow partially.
On Monday, Sept. 12, auction of Treasury bills, the government rejected all bids for three-month IOUs.
Likewise, the Treasury bureau failed to borrow through the sale of one-year notes as yields increased to 4.392 percent from 4.356 percent. Demand was also weak at P4.856 billion against the P5 billion offer.
Meanwhile, bids for the 182-day T-bills were accepted despite higher interest rates.
The six-month IOUs rose to 3.634 percent from 3.485 percent. Investors were willing to buy P9.975 billion of the papers. The government accepted P5 billion as planned.
National Treasurer Rosalia V. de Leon said interest rates jumped across the board as investors await data on the US August inflation rate, or US consumer price index.
“Markets remain cautious with continuous US Federal Reserve states on the need to be restrictive on finish job and conquer inflation,”de Leon told reporters after the auction.